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There is a divided opinion between the free market(or classical) economists and Keynesian economists in this argument
The Free market economists argue that the government shouldn't have any role whatsoever in interefering with the market and should let the market continues on its normal business cycle.
The Keynesian economoists would argue that the government has a role to "tame" the economic cycles (making less boom and also less recession).
However, economic cycles are a natural occurance in any economic system and can't be destroyed (or doesn't yet has an example of an economic cycle being destroyed.)
Most governments however do interefere with the market (an example would be huge stimulus packages by governments during the global recession of 2008-2009).
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∙ 13y ago
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What is the role of government in a leissez faire economic system?
Role of the government is to take taxes.
In the US what role does the government play in the economic system?
the government enforces economic laws and regulations
Does the Constitution of the US include a full description of the role of the government in THE economic system?
The US constitution says very little about the role of the government in the economic system, and certainly does not include a full description of that role.
What is the role of households in the economic cycle?
To provide all the factors of production to resource markets.
What did laissezfaire supporters believe about the role of government in economic affairs?
Entrepreneurs
In the economic function does the government attempt to keep the business cycle of the economy from being to high or too low?
In a Marxian economic function, the government attempts to keep the business cycle of economy from being too high or too low.
What government policy uses economic spending to manage the business cycle?
Fiscal policy
In which economic function does the government attempt to keep the business cycle of economy from being too high or too low?
In a Marxian economic function, the government attempts to keep the business cycle of economy from being too high or too low.
What During and after World War 2 what happened to the government economic role?
The government's economic role during and after World War 2 expanded. This expansion took place because the country was under the control of the Progressives who wanted an increased governmental role in everything.
What did laissez- fairs supporters believe about the role of government in economic affairs?
Entrepreneurs
What role does the government play in free enterprise?
It passes economic laws and regulations
What role does the government play in a free enterprise?
It passes economic laws and regulations
